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Lubelski Węgiel
Lubelski Węgiel Bogdanka S.A.

Very good operating results – increased production and sales

Wednesday, 2021-09-15

Lubelski Węgiel Bogdanka S.A. published consolidated financial results for the first half of 2021. Consolidated revenue for that period amounted to PLN 1,046.6 million (increase by 23.3%), EBITDA – PLN 329.8 million (+49.2%), operating profit was PLN 116.2 million (+132.9%), and net profit totalled PLN 91.4 million (+149.1%).


Company’s financial results for the first half of 2021 were mainly influenced by increased sale and production of coal as compared to 2020.

 

The first half of the year was characterized by increased demand for coal due to cool winter and revival in the market stemming from post-pandemic recovery of the economy.Therefore, optimizing wall run system and timetable became our priority. Intense work of the entire staff made this possible, said Artur Wasil, President of the Management Board of Lubelski Węgiel Bogdanka S.A.

In H1 2021, Bogdanka built 10.4 km of galleries. Production of commercial coal in the first six months of the year amounted to over 4.9 million tonnes, which is 33.8% more year-on-year (in Q2 alone, production amounted to nearly 2.3 million tonnes). Coal sales in the period reached 4.6 million tonnes, hence represented an increase of 30.3% compared with the previous year (2.2 million tonnes of coal were sold in Q2 alone). In the first six months of 2021, the average yield amounted to 71.6%, in comparison to 66.8% in 2020, and in Q2 2021 alone it reached 70.8% (compared to 68.4% in Q2 2020).

 

EBITDA was significantly higher both in the second quarter and in the first half of 2021 than in the analogous periods of 2020. Better EBITDA is mainly a result of increased sale of coal and low base from 2020,  announced Artur Wasilewski, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Economic and Financial Affairs.

Bogdanka retained its market position in the first half of 2021, reaching a high share of more than 28% in the sales of coal to commercial power plants. The share in total power coal sales accounted for 22.4%.

As assumed in the strategy announced at the end of the previous year, we search for new sales markets for our coal, knowing that demand in Poland will be decreasing in years to come.Bearing this in mind, we have established a relationship with Ukrainian entities, this is where we anticipate the prospect of further cooperation, explained Dariusz Dumkiewicz, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Development.

In the discussed period, the LW Bogdanka Group had investment expenditure of over PLN 137 million. The largest portion of this sum, nearly PLN 82.5 million, was used for new excavations and modernisation of the existing ones.

We continue to monitor and address the Company’s situation related to Covid-19 on a day-to-day basis.Consistent actions taken by the crisis management centre as well as responsible approach demonstrated by our employees allow us to maintain production as planned, saidAdam Partyka, Vice-President of the Management Board of Lubelski Węgiel Bogdanka S.A., responsible for Employee and Social Affairs.

 

Financial results of the LW Bogdanka Group for H1 2021 are presented in the table below:

 

in PLN '000

H1 2020

H1 2021

Change

   Net revenue on sales

849,011

1,046,591

+ 23.3%

   EBITDA

221,108

329,849

+ 49.2%

   EBIT

49,900

116,194

+ 132.9%

   Net profit

36,669

91,358

+ 149.1%

 

 

LW Bogdanka S.A. – Highlights

 

Lubelski Węgiel Bogdanka S.A. is the leader among hard coal producers in Poland, standing out in the industry in terms of modernity and efficiency of extraction. It is one of the largest hard coal mines in Poland. Lubelski Węgiel Bogdanka S.A. conducts primarily mining operations with respect to extraction, agglomeration and sale of hard coal. In 2019, the production of Bogdanka’s commercial coal amounted to 9.4 million tonnes. The Company supplies raw material mainly to industrial customers. Supplies are delivered based on long-term agreements with the sales made to commercial and industrial power sectors.

The Company has been listed on the Warsaw Stock Exchange since June 2009.

Since October 2015, Bogdanka has been part of the Enea Group, the second leading producer of electrical energy in the Polish power market, which manages a full value chain on the electrical energy market – from petrol, through production, distribution and sale of electrical energy, to customer service.

 
 

 

 

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Today is:
18 of October 2021
Name day of:
Hanny, Klementyny, Łukasza
© LW „Bogdanka” S.A. - 2021
Realization: Data Flow sp. z o.o.